Correlation Between YieldMax Ultra and Proact IT

Can any of the company-specific risk be diversified away by investing in both YieldMax Ultra and Proact IT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining YieldMax Ultra and Proact IT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YieldMax Ultra Option and Proact IT Group, you can compare the effects of market volatilities on YieldMax Ultra and Proact IT and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in YieldMax Ultra with a short position of Proact IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax Ultra and Proact IT.

Diversification Opportunities for YieldMax Ultra and Proact IT

-0.16

Correlation Coefficient

YieldMax Ultra  Proact IT

Good diversification

The 3 months correlation between YieldMax and Proact is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax Ultra Option and Proact IT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proact IT Group and YieldMax Ultra is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on YieldMax Ultra Option are associated (or correlated) with Proact IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proact IT Group has no effect on the direction of YieldMax Ultra i.e., YieldMax Ultra and Proact IT go up and down completely randomly.

Pair Corralation between YieldMax Ultra and Proact IT

Given the investment horizon of 90 days YieldMax Ultra Option is expected to generate 0.82 times more return on investment than Proact IT. However, YieldMax Ultra Option is 1.22 times less risky than Proact IT. It trades about 0.01 of its potential returns per unit of risk. Proact IT Group is currently generating about -0.11 per unit of risk. If you would invest  515.00  in YieldMax Ultra Option on July 22, 2025 and sell it today you would earn a total of  0.00  from holding YieldMax Ultra Option or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

YieldMax Ultra Option  vs.  Proact IT Group

YieldMax Ultra Option

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax Ultra Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, YieldMax Ultra is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Proact IT Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Proact IT Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with YieldMax Ultra and Proact IT

The main advantage of trading using opposite YieldMax Ultra and Proact IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax Ultra position performs unexpectedly, Proact IT can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Proact IT will offset losses from the drop in Proact IT's long position.

The idea behind YieldMax Ultra Option and Proact IT Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.